RI exports to Japan may go up despite slowdown

RI exports to Japan may go up despite slowdown

JAKARTA (JP): The state export promotion agency is confident
that Indonesia will be able to boost its exports to Japan by
eight percent to about US$8 billion (Rp 69.6 trillion) this year,
from $7.4 billion last year, despite the latter's economic
downturn.

Gusmardi Bustami, head of the National Agency for Export
Development (BPEN), said on Tuesday that his confidence was based
on the fact that Indonesia's exports to Japan rose by four
percent during the first half of this year as compared with the
same period last year.

Indonesia's exports hovered at about $3.6 billion during the
January to June period.

"Such an increase indicates that the slowdown hasn't much
affected Indonesia's export products, which are mostly basic
commodities," Gusmardi told reporters following a joint media
conference with Japan's trade promotion agency The Japan External
Trade Organization (JETRO).

According to Gusmardi, during the economic slowdown, Japanese
people cut their spending on electronics and technology, but not
on basic commodities.

Indonesia exports to Japan items such as agricultural
products, textiles, plywood, furniture, processed food and
beverages, and mining products.

Gusmardi said the demand was expected to be higher during the
second half of this year.

"In September and October, Japanese people usually buy
products in preparation for next year's sales," he said.

JETRO Jakarta center's president Hirojuki Kato said the
Indonesian exporters had to dispatch high-quality products,
despite Japan's sagging economy amid an influx of products from
China and other countries into Japan.

"They (the exporters) must try to provide better products.
Otherwise, their products will fail to compete," Kato said in his
speech.

Kato said Japan, through JETRO, would help Indonesian
exporters in promoting their products in several fairs and expos
in Japan.

"We will provide them (the Indonesian exporters) free venues
for business meetings, booths at exhibitions and translators,"
Kato said.

Commenting on the marked strengthening of the rupiah against
the greenback, Gusmardi agreed that such a situation would deal a
blow to exporters whose products had a high import content.

"But, the impact will be for a short time. In the course of
time, the exporters will soon offset prices in accordance with
the real situation in the market, and in turn recover their
business," Gusmardi said.

He said the government had forecast the country's exports to
reach about $50 billion this year, a marginal increase of three
percent from $48 billion last year. (dmr)